State Aid in Shipbuilding Industry

picture source

A lot of factors can contribute to the development of shipbuilding industry, but the most important factor is Government support. The industry itself is closely related to the shipping industry, since shipping industry obviously uses ships to operate :D so down turn in shipping industry also leads to the gloom in shipbuilding industry. Others factors such as oil price, war, etc can accelerate the process of down turn or the peak of shipbuilding industry (Zhend Dong Lu, Thesis p. 79)


It is also mentioned in a study that Government support plays biggest role for a nation to be market leader in shipbuilding industry. There are 6 factors that critical to the success of this goal:

1. Development Phase from agriculture to industry – increase internal demands
   
2. Involvement of government – financial aids
   
3. Involvement of government – orchestration
   
4. Co-operations among yards
   
5. Competence supply chains – low cost supplies
   
6. Develop specialized technologies and skilled labors
   

Below is a list of summary of how important that a government role (political will) for the development of its shipbuilding industry:

 

Country	State Aid
South Korea	• Announcement of a 32 trillion Won (approx. 18 billion Euro) support package to shipyards and ship owners as part of an emergency economic policy, comprising 12 billion Euros in loans and guarantees to shipyards and suppliers (supply of working capital) and 6.7 billion Euros in direct loans and debt guarantees to ship-owners (domestic and foreign).
	• Creation of a fund of some $3 billion (30% funded by government) to buy over 100 ships from Korean shipping firms.
	• The Korean Export-Import Bank has put aside 8.5 trillion won for loans to small domestic shipbuilders. The government will encourage state-run banks to provide guarantees for overseas contracts of troubled companies.
	• Korean Development Bank Program for Shipping Industry:
	- Size: Circa US$ 1.6bn
	- Investment Period: 2 years (up to 3 years)
	- Investors: KDB, Daewoo Shipbuilding and Marine Engineering, STX Panocean, Dongbu Insurance
	- Target Vessels: NBs and 2ndhand vessels
	- Fund Tenor: 5 to 7 years
	- Target IRR: Min 10.5% p.a. for the fund investor
	- Asset Management: KDB Asset Management or Korea Infrastructure Investments Asset Management ("KIAMCO")
China	• State owned COSCO, China Shipping Group and Sinotrans are supported to pick up cancelled shipbuilding orders from state owned shipyards (CSSC and CSIC.
	• State owned shipyards CSSC and CSIC support to carry out mergers and acquisitions through capital injections and the creation of an industrial fund
	• Continuation of the stimulus package to expand annual shipbuilding capacity to 50 mln DWT annually.
	• Specific measures, including competitive loans to ship owners to encourage fleet renewal; increased and preferential credit facilities for foreign ship buyers; (17%) subsidy on ship prices for domestic ocean going ships till 2012; access to working capital for shipbuilders at preferential interest rates + mortgage financing for ships under construction.
India	• Build in India policy – proposal for a $2 billion loan packages to the shipping, The fund is to provide shipowners loans at competitive rates and encourage them to acquire vessels from domestic shipyards industry connected to the idea of buying at domestic yards
	• Several shipyards in India will receive subsidies of up to Rs 60 billion (USD 1.25 billion) over the next few years
	• 2007 subsidy scheme (30% subsidy) for orders secured till August 2007, Newly proposed 20% subsidy from 2007 onwards. The Government provided a ship building subsidy benefit of 30% to shipbuilding companies for exported NBs, subject to fulfilment of certain conditions
Brazil	• 2003 Build in Brazil directive;
	• Subsidized loans for costs of domestically built ships by BNDES (state development bank)
USA	• The USA economic stimulus package also contains a budget for the acquisition of public support vessels such as ferries.
Turkey	Stimulus plan including:
	• Commercial loans and credit facilities to build ships contracted before downturn;
	• Extended loan facilities by Eximbanks for exported ships;
	• Encouragement of public sector to follow a Build in Turkey policy for their own ships;
	• Potential financial guarantees for companies in trouble.
Malaysia	• The Government has allocated an additional RM 2bn (US$ 542m) from its 2009 budget to a RM 1bn shipping fund, managed by Bank Pembangunan and a shipping venture fund Global Maritime Ventures
	• The development bank plans to disburse RM 800m (US$ 217m) worth of loans this year and the remaining in 2010
	• Ships have to be managed by Malaysian companies and carry national cargo or call at Malaysian ports
	• Successful applicants will be able to enjoy lower interest rates –ranging from 4 to 6 % –a further preferential rate will be granted to finance vessels built at the domestic shipyards
Singapore	• Government through the IF Scheme will take 80% share of the default risk for loans up to SGD 50 million (USD 35 million) extended to Singapore based companies used for overseas asset acquisitions and working capital
	• Some banks are able to take advantage of this IFS scheme and extend loans for the purchase of smaller vessels, such as tugs and barges
	• Withholding tax exemption on interest payable on a foreign loan entered into by a shipping enterprise to acquire a Singapore flagged ship under the Block Transfer Plan has been extended by another 5 years

So how about Indonesia? Too bad I don't know :D

Pelajaran dari Singapura: Quasi-Flag of Convenience

picture is from here

Open register untuk Indonesia mungkin berlawanan dengan UU Pelayaran tahun 2008, tapi perjalanan sejarah negara Singapura dari negara FOC dengan jumlah kecelakaan pelayaran yang tertinggi, hingga menjadi sebuah negara barometer untuk negara open register dan salah satu negara terpenting di dunia maritim patut kita contoh.

dari Transportation Journal (Phang Sock Yong, 1993):

It is also predicted that by the end of the century, as the only quasi-FOC that is truly operationally independent and with an international reputation for efficiency,Singapore will not only be one of the most important shipping registries, but will also be one of the most important maritime centers in the world for shipbuilding and repairing, cargo handling, the supply of seafarers, victuals, and bunkers, and the provision of marine insurance, surveying, arbitration, and financial and management services, congruent with her status a the world's busiest port. As a sovereign state that has signed all the major international maritime conventions on safety, manning, and pollution control, and as a registry that effectively enforces strict regulations on its flag ships with clearly identifiable owners, Singapore, in trying to establish genuine link between flag and ship, has set herself up as one of the most exemplary quasi-FOCs -- which we believe will be the wave of the future.

karena harapan Singapura waktu pertama kali menerapkan open registry adalah menciptakan lapangan kerja untuk rakyatnya, karena efek domino dari keberhasilan sebagai sebuah negara open registry akan mendorong industri maritime untuk juga ikut berkembang.

dari sebuah buku yang menganalisa Singapore sebagai sebuah negara "Quasi-FOC":

John NK Mansell: Flag State Responsibility: Historical Development and Contemporary Issues (P. 110-112):

The establishment and growth of the Singapore open registry - which was one leg of the stool of the port, the fleet, and the local shipbuilding and repair industry, was successful in terms of growth with an annual growth rate of 40% in the first 6 years. By 1972 the Singapore fleet had grown more than one million gross tons, and the five million mark was reached 3 years later (tenold 2003, p. 259). By 1979 Singapore was fifteenth largest flag State with its share of the world fleet having increased from 0.1% in 1969 to 1.9% in 1979. The average size of vessels increased from 1100 GT in 1969 to more than 10000 GT in 1979, of which high a proportion were newly built vessels. In spite of this remarkable growth the Singapore register attracted considerable criticsm as a flag of convenience, both within Singapore and from outside, and the government welcomed initiatives from the Marine Department for stricter and better control. The main reason for this change in policy was the stigma associated with being a flag of convenience, to solve unemployment for Singaporeans, had long been realised through the economic boom of the 1970s.

Two other distinctions highlight the difference between Singapore and other flag of convenience States. Firstly, the income from the register was, relative to Singapore's role as a regional trading centre, proportionally insignificant and, secondly, the very young age profile of ships register differed significantly from the fleets of other FOCs. It was relatively easy for Singapore to tighten age requirements as a large proportion of its ships, and particularly the larger foreign-owned ships, were relatively young. 

The focus upon improving the overall quality of the fleet was upon the two-thirds of vessels that were domestically owned, relatively small, and trading regionally. It was thus easy for the administration to focus upon these vessels without disadvataging the larger vessels on the register. This change in policy from a completely open FOC to an International register has not disadvataged the Singapore register, which has enjoyed continuing growth, and in 2007, as the world fourth largest flag state, comprised 2257 vessels with a total 36.3 million gross tons (Lloyd's Register of Shipping, World Fleet Statistics 2007, p. 12), two-thirds of which is still domestically-owned small vessels trading regionally. 

The register, which defines itself as a "quality register", is activaley promoted as a device to attract business to Singapore and accordingly, companies registering theis ships are required to have an office and a presence in Singapore. Application for registration are vetted by a quality committee and the administration emplys five flag State inspectors to carry out inspections aboard approximately 25% of their 1200 larger internationally-trading vessels per annum. Statutory survey and certification functions are only delegated to IACS members. In summary, after 10 years as completely open register, "the authorities found the benefits of the arrangement less weighty than the odium associated with being seen as a Flag of convenience" (Fairplay 2006, p. 256) and Singapore had used political expediency to cover full gamut of ship registration arragnements over the relatively brief period from 1967-1979

informasi untuk register kapal ke bendera Singapura pun mudah sekali untuk diakses dan begitu detail: 

http://www.mpa.gov.sg/sites/maritime_singapore/what_maritime_singapore_offer/global_maritime_services/quality_ship_registry.page

sedangkan, sulit sekali untuk mencari informasi ini di internet mengenai prosedur, biaya, dokumen, dan hal hal lainnya yang berhubungan dengan pendaftaran kapal berbendera Indonesia.

betul betul BANYAK hal yang harus kita benahi bersama-sama. dengan adanya penerapan azas cabotage, mudah mudahan bisa menjadi salah satu dorongan penting agar Industri maritim bisa menjadi salah satu jalan keluar untuk masalah pengangguran dan sumber pendapatan negara.

HUT MMI ke-9 (6 Oktober 2010)

I wish i can come to this event, because the TALK SHOW for this event is great, you can see from the list of the speaker, especially Pak Jusuf Kalla!

too bad the event will be held on midweek, may be, just may be, it is on weekend, I can take mandala air promo ticket and fly to Jakarta for this event :D

anyway, if you guys ( i mean MMI member) have spare time, just come to this event:

HUT Milis Migas Indonesia

Venue: Hotel Bidakara

Date: Wednesday, October 6, 2010

more info you can check the mailing list

Talk Show's topic:

“Peran Migas dan Energi Baru Terbarukan sebagai Lokomotif Pendorong Perekonomian Indonesia dalam Mewujudkan Kemandirian Energi Nasional"

Speaker:

- Ibu Evita H. Legowo (Dirjen Migas)

- Bpk. Luluk Sumiarso (Dirjen Energi Baru Terbarukan)

- Bpk. Rizal Asir (Deputy Umum BPMIGAS)

- Bpk. Widjajono Partowidagdo (Dewan Energi Nasional)

- Bpk. M. Jusuf Kalla

Moderator : Bpk. Iwan Ratman (Kadiv Manajemen Proyek BPMIGAS)

Flag in F1 race

I think you are all familiar with the checkered flag, yellow flag, or may be green flag in Formula 1 race

but actually flag sign in F1 is more than that, they have chequered flag, yellow flag, blue flag, green flag, red flag, black flag.... and so on.

as a race official, these flag signs are important, so, check the flag out:

green flag (waved), this flag is waved to indicate to the drivers that they have passed the end of a yellow flag section of the track and the track is clear. green flag also

indicate the start of sessions on track and at each post during the restart of a race.

yellow flag (waved), this flag indicates potential hazard ahead. single wave flag warns drivers to slow down, double flags waved at the same post means that the drivers must slow down. also waved during a safety car period, and no overtaking.

red flag (waved), this flag will be waved only on instruction by race control and indicates the session has been stopped.

blue flag , this flag warns the driver that he is about to be lapped and to let the faster car overtake if its waved. but if stationary, it means pit exit is open and a car on track is approaching.

white flag is used to indicate caution to drivers when a slow moving vehicle is on track, the flag is waved when slow moving vehicle is within the precinct and stationary when it passed.

black flag (stationary) and accompanied by car number, directs the driver to return to his pit and mostly used as signal for a driver to serve drive through penalty or excluded from the race.

Diagonal black and white flag (stationary) and accompanied by car number, this flag warns the driver of unsporting behavior, may be followed by black flag if the driver does not heed the warning.

black with orange circle flag (stationary) and accompanied by car number, it warns the driver of mechanical problem and must return to pit immediately.

red and yellow stripped flag (stationary), this flag warns the driver of slippery track surface due to oil, fluid, water, etc.

and the most known flag:

the checkered flag indicates that the session has ended.

Race Official F1 GP Singapore 2010

so, this is a news worth blogging.

last night, i checked my email through my HTC, but suddenly the phone email got problem, it downloaded all the mail inside my email account, which is by default, the phone will only download latest email (around 1 day old).

but, i saw an interesting email on top all the unwanted email, an email from SGP Race Officials Administration. Oh well, probably it was the old email (around March), which informed me that i was rejected as race official for 2010.

but, how can it be in the top? it should be a new email.

so i turned on my laptop, and checked it through chrome. then, YES, it is a new email. it's not 1, but 2 emails.

and this is the most important news:

Dear USKARA,

CONGRATULATIONS! This is to inform you that you have been short-listed for the position of Trainee Race Officials for the 2010 FORMULA 1 SINGTEL SINGAPORE GRAND PRIX!

i was just shocked :D so i guess, i was on the waiting list with the letter from the last march, then i guess there was a cancellation from somebody, so i fill this guy slot.

so, i have to cut half my planning end of this may for the General Official Module on May 29th.

I'm so excited man!. (because the race falls on (around) my birthday!!!!)

ZeeAvi in Singapore

maybe some of you, doesn't know who the hell is Zee Avi. so here a little bit excerpt from her website:

"Born in the tiny town of Miri in Sarawak on the island of Borneo, Zee grew up near the South China Sea in a liberal, encouraging household where her father owned an energy consultancy. "I was bred to be a lawyer," she says, but music was in her blood. Her father's father sang and played double-bass, accordion, violin and guitar in bands"

she got the fame through youtube. another powerful power of internet, huh? ;)

so i knew her actually from 98.7fm, i heard "bitter heart"



i was like "woooo, who is the singer...", and found out the singer was ZeeAvi, which i thought some western girl.

so, that is how i started to fall in love with her, eh, her music. i mean she is just adorable.

then i got an email from airasia, redtix, that Zee is going to have a mini concert in KL today. i tried to find info if she was scheduled also for mini concert in other country, and found out she has a gig in Singapore also.

so yeah, last night i went to stereolab directly from work he..he.... so i had a chance to meet Zee in person. and yeah, she is pretty. i got several shots, it was difficult to take photos, since it was very crowded, and someone puked next to the stage (dammit!).

some shots:




about her lyrics in her songs, she puts it like this:

"My stuff is pretty dark," Zee admits. "Most of my songs are about the reality side of romance, outlets to vent my emotions."

agree with her, it is just beautifully written.

full album is here

and atually i posted her video before, back in January.

David Beckham is Out!

can you imagine a rupture achilles? here is an illustration of it:

(Courtesy of this )

so, David Beckham will be losing his chance at this year world cup because of a rupture achilles, he suffered this in Milan vs Chievo game.

(courtesy of this)

this is a loss for England, since i understand that Capello doesn't pick a squad based on reputation, but he choses a squad based on current performance, what contribution will be to the team, and can he offer a different plan for the squad.

a lot people suggest that this could be a blessing in disguise for England, so Capello can pick Shaun Wright Phillips or Aaron Lennon or Theo Walcott to fill the position of DB. but SWP? come on, you gotta be kidding me, he is running like headless chicken. Aaron Lennon, his dribbling and pace is very good, but no end product. Theo Walcott, i found a good comments on him in Phil McNulty blog

"Yes, Walcott is blessed with pace but so is Usain Bolt. Having seen Walcott on numerous occasions this year, I reckon the quality of Bolt's final ball wouldn't be too far behind Theo's"

ha...ha... spot on mate.

yeah DB is old and not a regular player in Milan, but it is Milan, i bet SWP, Walcott, even Lennon won't be picked up by Leonardo to play in his Squad for Milan.

DB can give Capello a plan B, when against a tight defence team, or when in leading situation when DB can slow the game by controlling the ball here and there.

yeah, England will miss DB in this WC, and i believe the World Cup too.

yellow submarine!

do you remember the song by The Beatles titled "Yellow Submarine"?

last week i saw a yellow submarine! at Ngee Ann Polytechnic. i came there to attend a public lecture by Mr John Preedy from Azur Offshore (LNG issue and technology).

so, i present you a yellow submarine!

Yellow Submarine

In the town where I was born,

Lived a man who sailed to sea,

And he told us of his life,

In the land of submarines,
So we sailed on to the sun,

Till we found the sea green,

And we lived beneath the waves,

In our yellow submarine,

We all live in yellow submarine,

yellow submarine,

yellow submarine,

We all live in yellow submarine,

yellow submarine,

yellow submarine.

And our friends are all aboard,

Many more of them live next door,

And the band begins to play.

We all live in yellow submarine,

yellow submarine,

yellow submarine,

We all live in yellow submarine,

yellow submarine,

yellow submarine.

(Full speed ahead, Mr. Barkley, full speed ahead!Full speed over here, sir!All together! All together!Aye, aye, sir, fire!Captain! Captain!)

As we live a life of ease(life of ease)

Every one of us(every one of us)

has all we need,(has all we need)

Sky of blue,(sky of blue)

and sea green,(sea of green)

In our yellow(In our yellow) submarine.

(submarine) ( Haha! )
We all live in yellow submarine,

yellow submarine,

yellow submarine,

We all live in yellow submarine,

yellow submarine,

yellow submarine.

the cycle of life

started from last October, 2009 and ends today, March 6, 2010, science center staged an exhibition about human body, Body Worlds and The Cycle of Life, by Gunther von Hagens.

the exhibition displays original human bodies, which have been through a process called plastination, dimana air dan lemak di tubuh di gantikan oleh semacam plastik untuk menjaga tubuh (mayat) dari membusuk, untuk penelitian dan sebagainya.

temanya kali ini adalah the cycle of life, dari mulai intercourse sampe seseorang itu mati.

ada satu quote dari Mark Twain:

“Age is an issue of mind over matter. If you don't mind, it doesn't matter.”

it was a great displays of human anatomy, the slices of it, with informative description.



my shots are here

this is BALI.

so i met an Aussie kid in my hotel's swimming pool, and he challenged me for swimming race, sure i beat him (ya iyalah, anak 12 taon :D), i asked him,

"do you like here mate?", he is from Melbourne

"this is the BEST", he replied with no hesitation.

but yeah, you can find anything in Bali. it is just like, the island is destined to be a tourist destination island. culture, beach, mountain, lake, nightlife.

you name it, Bali has it.

(a cup of Milk Coffee facing Gunung Batur, heavenly...)

i went there only for short visit, and not enough. i need to stay 1 month :D

(Sunset in Uluwatu)

(bloom in Uluwatu)

(temple on the cliff edge, Uluwatu)

albumnya di sini